MSCI 572: Global Sourcing (with SAP)
(Phase 2 – Spring Term)
Tutors: Dr Marta Zorzini, Dr Paul Dunning-Lewis
The globalization of operations and supply chains is today prominent in almost every industry sector. Organizations are facing up to the huge challenge of learning to compete in this wider context and are internationalizing in greater numbers, faster and in more ways than ever before. This module will develop an understanding of the strategic role that sourcing decisions can play in supply chain management in order to gain sustainable competitive advantage in a global environment. It will look at alternative ways in which the upstream supply chain can be successfully configured and coordinated in different contexts, including the strategic role of IT in supporting this. The course will also explore some key issues relating to supply chain sustainability and business ethics in order to develop an appreciation of their importance to sourcing decision making.
Learning Outcomes
By the end of the module you should be able to:
- appreciate the opportunities and risks that organizations operating in a global context are facing, with a specific focus on the upstream supply chain;
- assess alternative sourcing decisions and the advantages deriving from the support of specialized IT, especially SAP, in different contexts;
- appreciate the ethical implications of sourcing decisions from a social and an environmental perspective;
- analyse complex case studies.
Outline Lecture Plan
The following main subjects will be covered:
- sourcing models and supplier configuration options;
- role of IT in supporting sourcing, e-procurement;
- outsourcing process, risk management in business process outsourcing, outsourcing services;
- sourcing decisions in a global context, approaches to managing global sourcing risk, governance and management issues in global sourcing;
- offshore outsourcing of IT work;
- sourcing ethics, ethical challenges in a global context.
In addition, to appreciate the role which software now plays within the discipline of Logistics and Supply Chain Management, students will be introduced to SAP's Enterprise Resource Planning (ERP) software solution through lectures from an external ERP consultancy and a carefully designed set of personal learning on-line learning exercises. These will provide an introduction to the navigation and functionality of the most widely used ERP software, including in its Materials Management (MM) module for obtaining materials from a firm's suppliers.
Teaching Methods
The module will combine theory and practical application through a mix of lectures, in-class case-study discussion and workshops.
Assessment
- Individual exam (a part of which will be case-based) – 70%.
- Group CWA – 30%;
Reading and Lecture Notes
No one text covers the course syllabus. Lecture notes will be provided for the course and, as appropriate, reading from the following texts and papers will provide additional coverage.
Books:
Van Weele, A., 2010, Purchasing and Supply Chain Management, Cengage Learning
Monczka, R.M., Handfield, R.B., Giunipero, L.C., and Patterson, J.L., 2011, Purchasing and Supply Chain Management, Cengage Learning
Oshri, I., Kotlarsky, J., and Willcocks, L.P., 2009, The Handbook of Global Outsourcing and Offshoring, Palgrave Macmillan
Fraedrich, J., Ferrel, O.C., and Ferrel, L., 2011, Ethical Decision Making for Business, Cengage Learning
Peng, M., and Meyer, K., 2011, International Business, Cengage Learniing
Papers:
Agrawal, V., Farrel, D., and Remes, J.K. (2003), Offshoring and beyond, The McKinsey Quarterly, 4, 25-35.
Amaeshi, K.M., Osuji, O.K., and Nnodim, P. (2008), Corporate social responsibility in supply chains of global brands: A boundaryless responsibility? Clarifications, Exceptions and Implications, Journal of Business Ethics, 81, 223-234.
Camuffo, A., Furlan, A., Romano, P., and Vinelli, A. (2007), Routes towards supplier and production network internationalization, International Journal of Operations & Production Management, 27, 4, pp. 371-387.
Caniato, F., Cagliano, R., Kalchschmidt, M., Golini, R., and Spina, G. (2009), Evolutionary patterns in e-business strategy, International Journal of Operations & Production Management, 29, 9, pp. 921-945.
Holweg, M., Reichhart, A., and Hong, E. (2011), On risk and cost in global sourcing, International Journal of Production Economics, 131, pp. 333-341.
Nassimbeni, G. (2006), International sourcing: Empirical evidence from a sample of Italian firms, International Journal of Production Economics, 103, pp. 694-706.
Rottman, J., and Lacity, M. (2006), Proven practices for effectively offshoring IT work, Sloan Management Review, 47, 3, 56-63.
Tate, W.L., Ellram, L., Bals, L., and Hartmann, E. (2009), Offshore outsourcing of services: An evolutionary perspective, International Journal of Production Economics, 120, 512-524.
